Microsoft Corp on Tuesday reported robust quarterly earnings, powered by demand for cloud computing.
The tech titan said it made a profit of US$16.7 billion on revenue of US$49.4 billion in the first three months of this year — increases of 8 percent and 18 percent respectively — more than in the period a year earlier.
“Going forward, digital technology will be the key input that powers the world’s economic output,” Microsoft CEO Satya Nadella said. “Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience and do more with less.”
Photo: Reuters
Revenue in the company’s “intelligent cloud” unit, which meshes data center-hosted software with artificial intelligence, surged from the same period a year earlier, Microsoft reported.
“Continued customer commitment to our cloud platform and strong sales execution drove better-than-expected commercial bookings growth,” along with cloud computing revenue, Microsoft chief financial officer Amy Hood said in the earnings release.
The COVID-19 pandemic accelerated a shift to relying on the Internet for work, education, shopping, socializing and entertainment, with Microsoft seemingly positioned to benefit from lifestyle changes that are to remain, even as people return to being out and about.
A business and productivity unit at Microsoft that includes its online suite of Office 365 software saw revenue grow with the help of a 34 percent increase in money taken in by online social network LinkedIn, the earnings report showed.
Microsoft bought LinkedIn for slightly more than US$26 billion in 2016.
Money taken in for content and services at Microsoft’s Xbox video game division rose 4 percent in the first quarter, as the company works to beef up its cloud-based games subscription offering.
Microsoft is seeking regulatory approval for its US$69 billion deal to buy video game powerhouse Activision Blizzard Inc.
Separately, Google’s parent company, Alphabet Inc, reported that earnings in the first quarter missed market expectations, with profit down from a year earlier.
Alphabet reported net income of US$16.4 billion in the first quarter on revenue that climbed 23 percent to US$68 billion from a year earlier.
The quarter brought robust growth in Alphabet’s search and cloud computing businesses, while the company continued to invest heavily in products and services, CEO Sundar Pichai said in an earnings release.
While Alphabet saw revenue from online ads climb to more than US$46 billion, the cost of acquiring online “traffic” that helps fuel that income was up about US$2 billion from the same period a year earlier, the earnings report showed.
“We are pleased with Q1 revenue growth of 23 percent year-on-year,” Alphabet chief financial officer Ruth Porat said. “We continue to make considered investments in capital expenditure, research and development, and talent to support long-term value creation for all stakeholders.”
On Tuesday, Alphabet put out word that it is adding labels to apps available at its Play Store to let users of Android-powered mobile devices see what kinds of data are collected about their activities.
“Users want to know for what purpose their data is being collected and whether the developer is sharing user data with third parties,” Android privacy product vice president Suzanne Frey wrote in a blog post.
“That’s why we designed the Data Safety section, to allow developers to clearly mark what data is being collected and for what purpose it’s being used,” Frey added.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
Her white-gloved, waistcoated uniform impeccable, 22-year-old Hazuki Okuno boards a bullet train replica to rehearse the strict protocols behind the smooth operation of a Japanese institution turning 60 Tuesday. High-speed Shinkansen trains began running between Tokyo and Osaka on Oct. 1, 1964, heralding a new era for rail travel as Japan grew into an economic superpower after World War II. The service remains integral to the nation’s economy and way of life — so keeping it dazzlingly clean, punctual and accident-free is a serious job. At a 10-story, state-of-the-art staff training center, Okuno shouted from the window and signaled to imaginary colleagues, keeping
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
RSS